Coca-Cola"Coke (KO, NYSE, around $61) is the world's...

STOCK WATCH

"Coke (KO, NYSE, around $61) is the world's best-known product," says Standard & Poor's The Outlook of New York.

Earnings should increase 20 percent to $2.45 a share for the full year. We look for earnings of $2.90 a share in 1992. Although the shares are trading at a lofty 25 times projected 1991 net, the premium price-to-earnings multiple is justified . . . We feel the issue is well situated to turn in an above-average performance over the next 12 months."

A&W Brands

"A&W Brands' position as a non-cola producer of soft drinks differentiates the company (SODA, OTC, around $35) within the industry and insulates it against periodic 'cola wars,' " says United & Babson Investment Report of Wellesley Hills, Mass.

"Thanks to an excellent bottler distribution network and skillful marketing, the company's brands have made A&W the fastest growing soft-drink company in the industry since going public in 1987. Buy for speculative growth.

Quaker Oats

"Gatorade is going global. The drink is the racehorse in Quaker Oats (OAT, NYSE, around $60) stable of brands; the product continues to expand at a double-digit rate," says Roger Spencer of PaineWebber.

"The company remains a leader in other product lines including hot cereal and pet food. We look for double-digit growth for the current fiscal year, with earnings rising 12.7 percent to $3.10 per share. We look for a similar advance to $3.50 a share next year. The stock is an attractive buy."

"The firm appears well-positioned to enjoy a sharp rebound as the economy recovers during fiscal 1992. We believe earnings can reach an annualized rate of 50 cents a share or better within 12-18 months. Investors should note that the stock sells for less than 85 percent of book value and 5.5 times our estimate of normalized earnings." HC